Whether you’re interested in acquiring a franchise or are eager to become a franchisor, it’s often in your best interest to do so with a franchise opportunity as a franchise broker. Franchise brokers, also known as franchise consultants, act as liaisons between franchisees and franchisors (and those who wish to be either). This broker brings both parties together and works to help create the best solutions to meet each party’s needs, with the sale of the franchise as the ultimate goal.
Hiring a franchise broker as a potential franchisee is especially important as it can help improve your chances of finding the ideal franchise opportunity for you. Such a professional consultant will be well acquainted with the business prospects available, including opportunities ranging from investment-only to full franchising. Additionally, they’ll work with you to find the right type of financing and partner with your attorney to draft the necessary paperwork to finalize your big push into self-employment and business ownership.
However, not all franchise brokers are well-suited to the job. There aren’t any stringent educational requirements, nor are there are any required certifications (although voluntary certification through the International Franchise Association exists) necessary to enter this career. To protect yourself from hiring a fraud, it’s important to consider the background of a specific franchise broker you’re looking at and check for the following four essential skills of successful franchise brokers.
1. Outstanding Communication
Franchise brokers must practice and be adept at active listening in order to truly understand the needs and requirements of their clients and the party with whom they’re negotiating. It is their job to act as the middle man, to take information from the franchisor or franchisee and seek their ideal match in the other. When you hire a broker, you should expect that professional to offer and communicate objective counsel that isn’t clouded by a premature desire to close the deal.
2. Stellar Presentation Abilities
They also need to know how best to translate client ideas into action; communicating the best game plan and working with people on both sides of the aisle to get new franchises built. Franchise brokers are adept at researching the necessary data and presenting said information in a concise manner that provides a clear picture of the outcomes of any business partnership.
3. Business Savvy
While it’s true becoming a franchise broker doesn’t require any specific training, the most effective brokers have a solid background in business. Successful brokers often have at least an undergraduate degree in a business-oriented field, with some having pursued a graduate degree and/or successfully completed the IFA coursework to earn the niche Certified Franchise Executive designation. Before a broker launches into their own independent consulting operation, they’ll also have served as a consultant in an established firm or have worked in the corporate offices of at least one franchise organization.
4. Organization Priorities
Finally, those in this field must have strong organizational values, including superior time management skills. Often brokers will be working with several clients in various stages of the selling process, so they must be adept at allocating their time, energy and resources for research, drafting proposals, attending client meetings and more.
With today’s growing economy, there’s also a growing interest in the buying and selling of businesses by people of all backgrounds, each in need of an experienced broker to find the ideal business match for them and negotiate the most agreeable terms.
If you’re interested in learning more about entering the franchise business, or you’re interested in more information regarding what goes into becoming a franchise broker, then take advantage of our franchise opportunity and contact us today at Transworld Business Advisors.